Washington (AFP)

"No tolerance for racism". The president of the American Central Bank, Jerome Powell, expressed an unequivocal position Thursday at a time when America is shaken by a wave of demonstrations for more equality and against racism.

"I also speak for my colleagues when I say that there is no tolerance for racism at the Federal Reserve and there should not be any tolerance for it in our society," he said during a press conference.

This statement is as strong as it is unusual for the boss of the powerful financial institution who held a press conference after the publication of new forecasts for the American economy.

Generally, "Jay" Powell refrains from commenting outside the strict framework of his prerogatives, going so far as to ignore the harsh criticism of President Donald Trump.

The death of George Floyd, a black man killed by a white policeman in Minneapolis, took thousands of people to the streets of the United States.

Beyond racism in the American police, this tragedy has highlighted the social and economic inequalities of which the black community is a victim.

"Everyone deserves the opportunity to participate fully in our society and our economy," said Jerome Powell.

"These principles guide us in everything we do," he said, highlighting the Fed's efforts to "diversity" or "to ensure equitable access to credit across the country".

The United States, hit hard by the Covid-19 pandemic, entered a recession in February.

And the Fed is counting on a 6.5% contraction in Gross Domestic Product this year due to containment measures that have brought the economy to a standstill to stem the coronavirus.

The unemployment rate should rise to 9.3% in 2020, before it was 3.5%, its lowest level in 50 years, and the unemployment of blacks and Hispanics had never been as low.

- Rooted inequalities -

But the downturn in the economy did not hit fairly.

"The pandemic is affecting everyone", reacted Jerome Powell while admitting that its economic impact is much more devastating for the most vulnerable populations.

"If you just look (the statistics), unemployment has increased more for Hispanics, for African-Americans and women, well above the percentage they represent in the workforce," he said. commented.

The unemployment rate for black workers continued to climb in May to 16.8% while it fell to 17.6% for Latin Americans and 12.4% for white workers.

In the United States, economic inequalities are deeply rooted according to the community, which the Fed has constantly deplored.

Thus, the average wealth of white households is about 6.5 times that of black households, she calculated.

In an optimistic scenario, it would take 200 years to erase this difference. But because of the pandemic, "most of the gaps will widen" again, had recently warned Dionissi Aliprantis, economist at the Cleveland Fed, in an interview with AFP.

The Central Bank expects a rebound in 2021, expecting 5% growth, but this improvement should not primarily benefit the black community.

Weakened in terms of jobs, African-Americans have also borne the brunt of the crisis in terms of health: the new coronavirus kills them twice than white Americans.

© 2020 AFP